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IBOS member KBC has announced their financial results for Q2 2016, in a report released on 11 August 2016. 

Based on the 2016 second quarter financial results, KBC Group ended with a profit of €721 million, in comparison to Q2 2015 at €666 million. KBC Bank Ireland brought profits for H1 2016 of €73.7 million after reporting a net profit of €39.5 million at the end of the second quarter. KBC’s retail and corporate base continues to grow, ending the Q2 2016 at €5.5 billion compared to €4.8 billion at the end Q2 2015.

KBC Bank Ireland has expanded during Q2, adding 16,200 new customer accounts. This brings the total number of new accounts in 2016 thus far up to 33,000. KBC demonstrated its strength and commitment to its customers throughout Q2 2016 introducing various rates for new mortgage customers at a two year fixed rate of 2.99%, and reducing rates for Current Account customers.

The launch of a new personal loan is also a milestone for KBC, offering a lower rate of 7.49% APR with a Current Account. KBC is the first to introduce Current Account openings using a mobile or from a desktop, using KBC’s new app.

“We are pleased that our positive start to the year has gathered momentum and resulted in a very strong second quarter,” said Wim Verbraeken, CEO, KBC Bank Ireland. “We are focused on growing with our customers, staff and working with our communities…our priority is continued investment in new product development and digital solutions for customers, as well as talent development across our teams with the ongoing support of our shareholder.”

Below are the highlights of our second quarter 2016 results:

  • Operating profit of €38.8 million before tax and impairment, up from €30.8 million in Q2 2015
  • Capital Position at end of Q2 2016: CET 1 Capital Ratio 13.2%
  • Stock of impaired loans reduced by 14% to €6.1 billion from €7.1 billion since Q2 2015
  • 16,200 new customer accounts in Q2 2016, bringing to 33,000 the total added in H1 2016
  • Strengthened mortgage offering through market-leading variable rates and reduced fixed rates for customers
  • Significant step up in KBC’s digital offering as the first bank in Ireland to offer entirely digital current account openings from mobile and desktop devices
  • Launch of a new personal loan product, offering one of the best personal loan rates on the market at 7.49% APR with a KBC Current Account
  • Strong momentum continues in reducing number of mortgage arrears cases
  • KBC Group reports net profit of €721 million for Q2 2016 and shows a very strong liquidity and capital position as evidenced by the results of the EBA stress tests where KBC had a CET1 ratio of 11.3% in the adverse stress test scenario

Access the report, via KBC’s website, here.